Thursday, October 30, 2014

MFI Stocks Making A Comeback

Several times this year, I have mentioned how MFI has been trailing benchmarks as it does tend to be streaky. But I just noticed yesterday that my MFI index, which is comprised of 50 stocks picked from the screen at the start of each year has been streaking.... Upwards!

Since the start of the fourth quarter, the 50 stocks in that index are up a snappy 4.8% (wish I were doing so well) while the Russell 3000 is up just under 1%. Yesterday was a bang up day for the stocks as USNA was up 22% and EGL Was up 12%.  In just the fourth quarter look at some of these individual returns:

  1. EGL 35%
  2. GTIV 16%
  3. HLF 14%
  4. ESI 121%
  5. USNA 46%
We shall see if the momentum continues. This morning I will note that RGR and WTW are down pre market on earnings. I am fortunate Mr Random did not pick COH or RGR for me (or KING for that matter so far). 

Then on a personal note, every month I look at my net worth (everything) and track in a spreadsheet. I was a bit worried what it would be this month end as I did have the GTAT fiasco.  But it wasn't so bad, down just 1/10 of a percent - essentially flat. So while I may not be able to buy that beachside condo in Hawaii with my GTAT proceeds, it looks like I can still afford to eat at Outback Steakhouse every now and then when I retire. For the year I am up 8%. Of course that is more than investment returns, that is salary that I am saving, equity I have added in my house, money I have placed into college funds, IRAs and 401K - kind of everything. 

Interestingly, I am not sure I am going to be able to participate in GTAT lawsuits. They are really looking at people in bought in after November 2013 (when aapl announcement was made). Recall I bought my shares at $2.80 in February 2013. 


John Carney said...


Did Barrons today and think spin offs are still a wild card. I did read the book but you still need to be a stock picker to make this work.

Mr random gave me COH, RGR, King. If I collect the dividends on all 20 stinkers they will pay for 3, that lose about 22% each.

Dividends may be the key on why this may work.

John Carney said...


Will you eliminate RGR in December as the dividend yield going forward will not equal 2.6% for a while? The yield for the last four quarters does equal 3.9%.

I think that may be my rule going forward.